Saturday, April 21, 2018

It's not off-base to talk about clouds and silver linings when discussing and contemplating Bitcoin and cryptocurrencies in general. Since we're long into spring of 2018 already, it's safe to say that the phenomenal year that was 2017 will not be repeated this time. The tumble Bitcoin took in the first quarter was just too much, but now it seems as if there is something good coming out of its supposed demise.

Despite the fact that Bitcoin has dropped heavily – very heavily, as much as by 70% since its peak value of almost $20,000 in December 2017 – it has actually started to gain new momentum in terms of interest from institutional investors who are believing in Bitcoin again. For the first time in months, “serious money is entering the market” - those are the words of Jeffrey Van de Leemput, Cryptocampus analyst. “A couple days ago I helped set up a 200k BTC transaction for Chinese buyers…Soros, etc., are coming in, we will now see the start of the real bubble,” he added.

As the cryptocurrency is currently trading for $8300 per coin, these events are perfectly in line with what was already predicted by Smart Valor's chief executive officer, Olga Feldmeier, who said: “A strong break above the $8,000 USD area is having the potential to comprise the ignition for the next bull phase, for which a lot of investors were waiting for a long time and will be happy to support now.”

Ari Paul, chief investment officer of BlockTower Capital is not as surprised, as he already commented that this institutional investment is inevitable for cryptocurrencies. He commented, “Even if they never believe in it, as an asset class, they’re smart enough to recognize the alpha opportunity.”

Saxo Bank analyst Jacob Pouncey is of the opinion that legacy markets uncertainties are giving an edge to the rebirth of Bitcoin demand and other crypto assets that are in no correlation with mainstream financial markets, adding, “If there is a significant pullback in the equity markets, there will be an inflow of money into uncorrelated assets, or assets that lie outside the reach of the traditional financial system in which cryptocurrencies are a potential alternative. The inflow of institutional capital to the cryptocurrency market, due to the increase in regulation and investor protection, could lead cryptocurrencies to a positive quarter.”

Managing director and global head of equity products and alternative investments at CME Group, Tim McCourt confirms that trading volume is steadily increasing each month!

Could this be it, the moment all of Bitcoin enthusiasts were hoping for (and in likelihood praying for)? Do you believe this will once again put the cryptocurrency and Bitcoin wheels in turbo motion? Have your say in the comments below…